Le Viet Hai forecasts the market in 2023: Tourism real estate “pauses”, low-income housing develops09/02/2023
Chairman of Hoa Binh Construction Group assessed the “breakdown” of the tourism industry because Covid-19 seriously affected the real estate market, and said that businesses urgently need the support of the State.
“I assess the construction and real estate market in 2023 will develop in the following areas. The first is to build low-income housing, social housing, housing for workers”, said Mr. Le Viet Hai – Chairman of the City Association of Construction and Building Materials. Ho Chi Minh City (SACA), Chairman of Hoa Binh Construction Group spoke at the seminar “Vietnam’s economic development dynamics in 2023” organized by the Ministry of Construction.
“Besides, there are urban housing projects that are in progress, and there may also be new projects and industrial works that bring a huge source of work for construction businesses. In parallel, there are public investment projects and infrastructure projects,” he added.
However, the Chairman of Hoa Binh Construction Group said that the tourism real estate segment in 2023 may “be paused” because there is an excess of tourist real estate. After more than 2 years of pandemic and 1 year of war between Russia and Ukraine, these tourist real estate properties cannot be put into operation.
“I think the main cause of the impact on the real estate market is from the tourism industry, and the tourism industry has been heavily impacted by the Covid-19 pandemic and the prolonged war in Eastern Europe.”
“No other real estate business can afford such a time. Loans have a term of only 3-5 years, while projects are not exploited due to unexpected events,” said Mr. Hai.
According to the report “Overview of Vietnam’s real estate market 2022” of Batdongsan.com.vn, the real estate market in coastal provinces such as Khanh Hoa, Da Nang, Ba Ria Vung Tau – which is a tourist destination Celebrities are all in trouble.
Comparing the data of the fourth quarter of 2022 with the first quarter of 2022 shows that the level of interest and the amount of news about these markets both decreased sharply. The biggest drop in interest occurred in Ba Ria – Vung Tau and Binh Thuan, down 51%. The land plot segment in these provinces also experienced a significant decline in interest.
Mr. Hai said it was clear that real estate businesses could not anticipate unexpected events, adding that the automatic and natural market adjustment would not solve the problem.
“Thus, it is very necessary to support the State for real estate businesses that have done very well, contributed a lot to the national economic development, and renewed the urban face of Vietnam. That help will also solve the problem of social security, because so many people are involved in this whole ecosystem,” he suggested.
In addition, in order for investors to see the whole market, avoid imbalance in supply and demand in the introduction of products to serve the general market, Mr. Hai said that there should be an information page from the State. This page needs to include all information about planning, real estate transactions, status of projects… so that businesses as well as investors can make more appropriate decisions.